Wednesday, December 22, 2010

One Way COMIDA Keeps Your Taxes High

The D&C reports: "IBM Corp. won approval on Tuesday of a tax break that will help it invest $40 million to upgrade its data center in Greece...

Although IBM doesn't figure to add workers in Greece, the upgrade will retain 550 jobs at the data center in the Canal Ponds Business Park.

The center needs improvements to its heating and cooling systems and to its uninterruptable power supply, according to Wayne C. Spinei, IBM program manager for economic development. Those infrastructure projects will cost about $5 million.

The bulk of the investment, $35 million, will be for the purchase of computer hardware and software and related equipment over five years. Most of the business at the facility involves outsourcing for the giant company's customers, Spinei said.

COMIDA approved a sales tax exemption for IBM's investment.

Spinei said keeping the data center in New York state has been a competitive challenge for IBM because power is cheaper in Boulder, Colo., and Durham County, N.C., two places where other IBM data centers exist.

Electricity costs 8.5 cents per kilowatt-hour in the Rochester area, compared with 6.6 cents per kilowatt-hour in Boulder, according to COMIDA documents. Spinei said the tax break will help the local data center stay competitive.

Judy Seil, COMIDA's executive director, did not offer the usual cost-benefit analysis for the project, saying it was difficult to initially estimate the benefit to taxpayers."

In summary:  1) COMIDA gives IBM a sales tax exemption to buy computers & related equipment (from WHO?).  2) In return, IBM does NOT have to create any jobs. 3) Figuring any cost-benefit to taxpayers is admittedly "difficult" for COMIDA to do.

SCATS ~~ So why the hell is COMIDA giving them a break on buying paper clips, pencils & envelopes when the property tax payers (YOU & ME!) will be left making up the difference?

2 comments:

Anonymous said...

COMIDA is just socialism for the rich or at least the business class.
We are basically bribing companies to stay in Greece Tax Break Park so Auberger and Brooks can say things are okay.

Charlie Hubbard said...

What you never see with these tax breaks be it comida or others is what the additional cost is for the others.
Somebody has to pay.
It's called government via touchy/feely OR let me buy your vote.